The key indices of the US stock market - Dow Jones, NASDAQ, and S&P 500 - ended with a new powerful fall. In principle, everything is happening now exactly as we predicted. The US stock market continues to fall amid the tightening of the Fed's monetary policy, as well as due to the geopolitical conflict in Ukraine. Demand for risky assets continues to decline, and cryptocurrencies and stocks are just among the risky ones. The demand for safe assets and currencies is growing, which is why investments in bank deposits, bonds, and the dollar are growing. Bitcoin yesterday-today dropped to the $ 29,750 mark and worked it out perfectly. We called this level the target level. Thus, in the medium term, the decline of these assets will continue. Maybe not in a collapse mode, but so far there is no reason to assume the growth of stocks, stock indices, and cryptocurrencies.
A historic event took place last night, without exaggeration. For the second time in the history of the United States, the Lend-Lease Law was signed, which provides for virtually free supplies of weapons and strategic materials with ammunition for the recipient country. For the first time, this law was adopted during the Second World War, when the State military industry worked for the "anti-Hitler coalition". Technically, Lend-lease is not a free pleasure. However, it implies, firstly, payment sometime later, and secondly, payment only for the equipment that will not be destroyed during the fighting. For Ukraine, Lend-lease means that it will be supplied with weapons and equipment not from the warehouses of the European Union or the United States, but directly from American factories. That is, Kyiv will receive almost any weapons and in almost any quantities. Washington has every right to independently purchase certain types of weapons from third countries or partners to further transfer them to Ukraine. Thus, if earlier weapons were transferred to Ukraine, which could be sacrificed by certain countries, now the entire military industry of the allies will work for Ukraine. Experts say that we are talking about any types of weapons, even military aircraft, everything Ukraine asks for.
Separately, I would like to note that such expenses are not even unbearable for America or the European Union. Some experts believe that helping Ukraine is an expensive pleasure for the whole world. However, at the moment, the EU has officially provided $ 1.5 billion in military aid. States - a little more. Recall that during the pandemic, the Fed printed or created $ 100 billion a month in bank accounts. Thus, if necessary, it will always be possible to print the necessary amount of money, regardless of high inflation. The conflict between Ukraine and Russia will drag on for many months. Kyiv has already stated that there will be no "Donbas 2.0", and the AFU will fight until they recapture all their lands.
